RE: Presentation snippets11 Dec 2024 13:35
E) gas renegotiation price. They’re in the middle of gas negotiation with the new licenses. The fixed price for gas they have to now is okay. But they want to change this. They want a price that is fair - that gets a world recognised price for gas.
Know that there are new bearers on the island they can assure us that they are going to get the maximum prices on the new blocks .
On the old license they are in year three every five years they can negotiate, but it makes sense that if they have higher gas prices, then they can drill more wells.
They want more money so that they can drill more wells and this is a win-win for everyone .
F) Any partner interests? No, but they are not seeking a partner but the gas end is under discussion(sic).
G) the model they have is the wells come off harder but the model shows that they do flatten out. What they wanted today was to do a reset to show the gas wells are still great. They make no apologies for that. The wells are still fantastic.
H) Cas 3 oil well - like Penal where 100m barrels oil produced. Better than Balata to the East. A billion barrels in place in Penal with 1930s tech has recovered 100m barrels.
Cas 3 has exciting oil rates.
I) Cas 3 - why oil? The structure moves up into the real block which is also gas as it moves up structure. It could either be oil or gas- Cas 3 is liquids.
J) bridge cost? Infamous bridge it cost 1 1/2 million dollars but it was a fixed price contract and a lot of the delays were waiting on Weather. There were actually two bridges. One was a diversion bridge. There’s one diversion part four when the river is raging with water, the river is either raging with water or dry. The branches needed to bring oil and condensate out and to facilitate RIG moves. It’s more or less complete, but not holding anything up.
K) they are going to drill as cash flow comes in they have 140m capacity, they want to get to 100. Cas will have 4 wells in the middle of the block. 10 wells total, wells on B & 4 C.
L) guidance. Based on what Coleen said, wells have 7 months payback. They will use new term debt to bring forward 7000 barrels of oil equivalent per day 22 million funds flow 29% increase.
M) 51% opening choke. Cas 3 just been switched from the plant to separate containers the reason was it was flooding the facility so it had to be moved to tanks.
N) Cretaceous do a JV? Challenge here is the drill through the upper areas but we’re not doing this in 2025. We don’t want to give away discoveries in those upper areas.
o) TRIN how would it have changed cashflow? Add 10 to 12m, but 25% dilution.
Cas 2 & 3 since are producing nicely. ST1 & 2 doing well.
P) Declines not just Cas deep, but Cas 2 & 3, but now they have bottom recorders to give better data. They will now drill the next well into Cas deep, bottom part of reservoir and allow to drain. They are using data which gives good estimates.
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